How to Borrow Money Overseas

There are many good reasons why you would want or need to borrow money. For instance, you may want to pay for school, buy a home or take a vacation to a tropical island. In most cases, you will borrow money from a local or national bank. However, it may be possible to borrow money from an overseas entity. How do you borrow money overseas?

Find a Lender Willing to Work With You

The first step is to find a lender that is willing to work with you. In some cases, this may be a traditional bank that does business both overseas and in your home country. It may also be an individual who is willing to provide the cash needed to finance a purchase or otherwise make an investment in the local community.

Be Cognizant of Local Borrowing and Finance Laws

When you borrow money from a foreign entity, the laws of that country generally apply when enforcing its terms. While usury laws in the United States may limit interest rates or put caps on how much an individual may borrow, that may not be true in another country. As a general rule, disputes over a loan after both parties agree to it are settled in the lender’s home country or wherever it happens to be domiciled.

Why Borrow Money From Foreign Lenders?

If you were to buy a home in another country, a lender in your home nation may not want to take a risk on providing the capital needed to make that purchase. They may also not have the loan type that you need or meet home loan standards established in that country or a particular section of that country. Therefore, it may be easier to work with a foreign lender to ensure that the purchase can go through with as few issues as possible.

Is It Legal to Borrow Money From Foreign Lenders?

Yes, you can borrow money from any lender that is willing to work with whether it is a bank or a private lender. It is common for borrowers to buy currencies that have low interest rates and invest that money in nations where interest rates are higher. This is referred to as arbitrage, and it is a technique that may guarantee a certain level of profit on a given investment.

Will Foreign Lenders Require Collateral?

In many cases, foreign lenders will require collateral to secure any loan that you take out. Typically, the collateral is the asset that you purchase with the loan proceeds. However, you may also be required to use your home, car or another asset to secure a personal loan or a loan from a private investor.

Borrowing money overseas may be a great way to leverage foreign markets to diversify your portfolio. It may also be an interesting way to take advantage of lower interest rates globally to help improve returns on any investment that you want to make with a foreign loan. While anyone can borrow from any lender on the planet, make sure that you understand the terms and conditions of the loan. Furthermore, make sure that you are comfortable with the recourse that may be available if a dispute should arise with an overseas creditor.

Essential Financial Issues to Sort Out Before Emigrating

Emigrating to another country can be a great way to boost your career and quality of life. It will be an exciting time as your life takes a new direction, opening up many fresh opportunities. Arranging and going through the whole process can be complex, depending on which country you are moving to and on other circumstances. There are many financial considerations that must be taken into account and arranged to ensure the whole action of emigrating goes as smoothly as possible.

Tax Situation

The first thing you will need to do regarding tax, is to inform HMRC in the UK that you will be moving abroad. As an expat you will be exempt from such taxes, but if you do not tell the authorities you will be charged the additional taxes. The easiest way to do this is to fill in and return a P85 form from Revenue and Customs. An R105 form is also required if you will be paying tax abroad yet also receiving interest on savings in the UK. Of course, you will need to arrange the appropriate tax situation within the country you are moving to as well.

Healthcare

Unlike the UK, most other countries do not provide free healthcare for their inhabitants. However, Britain does have special agreements with some countries where your healthcare and costs will be covered, so check with the nation or NHS Choices first. If you’re going to a European country then applying for a European Health Insurance Card (EHIC) is a good idea, which will help you with access to reduced cost health care.

Legal Issues

There are various legal implications of emigrating abroad outside of tax and healthcare issues. If you’re going to a new job then the company should take care of many issues, such as compliance with labour laws, visas, entry and taxes. However, for those going alone, you will need to ensure all the appropriate regulations are met, so it can be worth seeking legal help beforehand.

Financial Planning

Opening a bank account in your new homeland will be an essential task, to help meet tax requirements but also for the ease when transferring money from your UK accounts. Those retiring abroad will need one to access their expat pensions, while other investment and financial planning purposes will require a bank account in your new country.

It will make your emigration a lot simpler and more enjoyable if these issues are soted out before you arrive in your new home.

Clever Traders use CorrecTrade

At last! You can now trade with CorrecTrade – yes it’s the latest trendy craze in the world of binary options. It makes trading way easier than ever before, you’d be mad not to try it!

What is CorrectTrade?
Well, good question, friend! CorrecTrade is a tool that anyone can use. It is a trading bot – or a piece of regular software to those that don’t the fancy jargon! Connected to the World Wide Web, this little bot works effortlessly and easily. It uses its clever technology to scan markets, like an extra pair of eyes, looking to help you find tasty trades that will make a profit! Yes, even in markets that are going south, CorrecTrade could be the tool that helps you make some MONEY!

What do I have to pay?
Yes, the bot looks great and the technology in there is pretty nifty. But is it going to cost you too much cash? Is it going to ruin your profits by charging fat fees? Answer = No! CorrecTrade is utterly brilliant, and for the clever clogs like you reading this, it is FREE! Yes you heard right. If you act quickly, you have a good chance of signing up to the limited offer that allows users to enjoy CorreTrade for free. Well fancy that!

But seriously, does it work?
Guys, the best way to find out is to sign up (since it’s free for fast acting clients who go NOW) and get trading. Just go to the website a make an account. Add some funds, and start trading. Last of all, withdraw your winnings! How much easier could it be? If you also look at a CorrecTrade review – have a search on google, then you will be pleasantly surprised at how popular this bot is getting!

Maybe I need more persuading?
Ok, well here are some little statistics for you. The CorrecTrade performs detailed market scans, and after looking around it chooses those that are over 75% likely to be actualized. Once the User chooses which asset he or she wants to trade on, the bot will tell them if that asset is most likely to go up or down. I hear you ask ‘but how long does that take?’ Well, it is supremely fast at around 60, 90 or 120 seconds. That’s not much time when money is at stake!

This product is sophisticated, but very easy. Smart algorithms are your new best friend. If you are a novice, or simply in a hurry, then using this bot could make all the difference to your trading success.

If you’ve got more questions…
If you are an intelligent, curious person, it’s likely you’ll have some extra questions. So visit the CorrecTrade FAQ and enjoy learning a little bit more.

5 Ways to Act Rich without Having the Bank Account to Back It

You do not have to throw any money around and sink into debt just to play the part of seeming to be well off.  In fact, it is the way you present yourself that will last a whole lot longer than buying a bottle of champagne for your friends.

Be Confident but Not Cocky

I have come across plenty of people that think they are “cool” just because they throw money around and make the others in the group feel that they are inadequate because they are not flaunting, or wasting, money.  Acting this way gives off a cocky vibe and will only result in everyone else talking behind your back, so in a group setting, you can be confident, but do not cross that line. Cock is what leads people to buying more than they earn, and spending more on a McMansion that they will eventually foreclose on.

Dress Like You Care

Your clothes could be from a high end store or from Target (not any rip against Target, that is where I get a lot of my clothes), and you can still dress to impress.  First off make sure they are cleaned, pressed, and match.  Shoes should be cleaned and not show any wear.  For those that are unsure that I have seen friends wear that are big no-no’s are t-shirts tucked into jeans, and white gym shoes at any sort of event.

Buy Quality Items

You do not have to own every item that your peers have, but the items you can afford make sure they are quality, otherwise not only will they not last, but you will not impress anyone with an off-brand.  If it means saving up for an entire year to buy a Weber grill, that is far superior than purchasing a mediocre grill from another brand, and other unnecessary items.  Be smart about what you are purchasing.

Stay Up on Current Events

There does not have to be quotes from famous writers in order to sound classy.  Stay up on current events in your local area so that you can easily keep conversation and sound informed about your home town, and not just celebrity gossip or what happened on WWE last week.

It’s Alright to be Cheap

Frugal is the key word, not cheap.  Watch what you are spending your hard earned money on, and make it worth the purchase.  Nothing worse than leaving an expensive dinner and ask yourself what did you just spend all this money on.  Save your money and eat at home.

5 Common Financial Investment Hazards To Avoid

Learning any new skill, whether it’s playing a musical instrument or completing a course in aeronautical engineering, takes time and commitment. The same philosophy applies when it comes to investing. And, like any endeavour, we all make mistakes along the way. The trick, of course, is to learn from those mistakes – but if you’re just starting out in any form of investing, there are certain principles that hold true throughout.

Here are five key priorities to bear in mind before investing your hard-earned cash.

1. Knowledge is power

Never make an investment based on instinct alone. Every smart investment decision is based on research and empirical evidence in order to minimise risk. When it comes to online trading, for example, there are a growing range of investments from stocks and shares, to FX trading and CFDs. But what makes a trader successful is access to data and information. And that only comes from research.

 

Of course there are many tools out there that can help you with that research and enable you to acquire the knowledge you need to make good decisions. Trading platform often provide their own tools and resources to offer support. Spread betting platform CMC markets for example offers a range of guides such as an introduction to forex trading, news and analysis, plus other resources to help build your market knowledge and allow you to make a more informed decision about your next investment.

 

2. Look before you leap

Online trading might look like an easy way to make money – especially if you believe the multitude of online Internet ads telling you so, but that’s not the case at all. It’s not for everyone and the only way you can find out if it’s for you is by trying it. Day trading, in particular, is a risky business and should only ever be attempted by seasoned traders.

Fortunately, you don’t need to spend any cash to learn how to trade. All you need is a free account with any number of online trading platforms out there. Most will allow you to make mock trades, so you can get a feel for what it’s like – and, more importantly, find out if you’re any good at it!

3. Too much, too soon

When you finally get round to knowing enough about trading online to use ‘real’ money, it can be tempting to invest it all on one ‘sure thing’. That would be a mistake. Make sure you spread it around to diversify your investment. Sound investing is all about buying a number of assets selectively over a period of time while keeping a comfortable level of risk. Essentially, this is what makes investing different from gambling. So don’t put all your money on one horse; invest in a controlled manner across a range of asset classes and sectors.

4. Get the taxman on your side

Where amateur investors get it wrong is that they don’t always fully understand the tax implications of their investments. Most profit from investments is subject to taxation, whether due to capital gains (£11,100 is the 2015/16 capital gains allowance) or tax on dividends (minimum 10% at source – although this law is set to change next year with the first £5,000 becoming tax free). However, while all of this can affect your tax refund, you can also offset capital losses against your tax liabilities. So if you don’t already have an accountant preparing your tax return, perhaps now’s the time to hire one.

5. The sunk cost fallacy

Stop losses are there for a reason – mostly because of what is known as the ‘sunk cost fallacy’. This is an economics principle based on human nature. A sunk cost is one that has been paid out and cannot be recovered. For example, say you over-order at a restaurant, but keep on eating, as you don’t want the food (or money you’ve spent) to go to waste.

In the same way that people stay in bad relationships because they’ve already invested so much into the partnership, the sunk cost fallacy can be catastrophic when it comes to your relationship with your investments. The stop-loss is there to prevent your losses going beyond a certain point – as it separates your emotional investment from your financial investment. So if you don’t want to end up in a dead-end relationship with your finances, make sure you use it.

Home Value Rising? Put the Equity to Good Use

With the current housing market recovering to levels that existed prior to the housing market crash in 2007, depending on when you purchased your home, you may find yourself with extra equity in your home that you have never seen previously.  Since interest-only mortgages have been out of the picture and homeowners were able to get into a 30 year mortgages again, at least now having a chance to pay down the principal balance.  While it may not seem like a lot goes to principal, at least it slowly pays down, and now that home values are increasing, the difference between the home value and the remaining mortgage balance is growing, giving equity in your home.  Although you will want to make sure you at least stay under 80% loan-to-value in order to avoid mortgage insurance, there are plenty of ways to take cash out of the equity in your home for good use.

Pay Off Credit Cards

Paying off high-interest credit cards and staying out of debt is first priority, so if you have any credit card balance, you could take cash out to pay off.  Mortgage rates are significantly less than credit cards, so rolling into your mortgage can be huge saving each month.  Also, it puts you at ease that you are credit card debt free; just do not go on a spending spree once they are paid off.

Invest, Invest, Invest

Too often people take a cash windfall and squander on meaningless things that depreciate in value. Instead, consider taking the money and investing into the stock market! The naysayers have long been talking about the inevitable decline in the market, but the truth is that nobody is really sure. We do know that investing for the long term is recommended by just about every finance guru out there.

Time for Home Improvements

If you have always planned to remodel the bathroom, kitchen, or finish the basement, now may be a good time to start these projects, tapping into your equity to complete, while still increasing the value of your home with the improvements.  No matter if you have always wanted to do the improvements, or fixing to sell in the future, you should still see the return on your investment, provided you do not go overboard on materials.  Adding landscaping, flowers, or putting a fresh coat of paint on the exterior can give an instant curb appeal upgrade.

Refinance to a Lower Rate

If you have not been able to refinance in the past due to owing more than your home was worth, now may be a good time to get into a lower rate.  With current interest rates still at historic lows, getting out of your 4%+ mortgage rate and into a lower rate could save plenty of money each month in just interest savings.  You could also refinance into an even lower rate with a 15-year mortgage, and pay off even sooner.

Forex Strategies

There are many different strategies a trader can use when trading Forex, some more successful than others.

The Pin Bar

One of the most popular strategies used in Forex trading is the pin bar formation. The pin bar is a price action reversal pattern that indicates at what point a price was rejected in the market.

The actual pin bar itself is a bar with a long upper or lower “tail”, “wick” or “shadow” and a much smaller “body” or “real body.”    Pin bars can be found on most bar charts or candlestick charts. In fact, candlestick charts are used the most because they show the price action the clearest and are the most popular charts amongst professional traders. Traders prefer the candlestick version over standard bar charts because they provide a better visual representation of price action.

False Breakout

Here’s another Forex strategy worth looking into: the ‘False Breakout’ or ‘Fakeout’  trading strategy. A False Breakout is a price movement through an identified level of support or resistance that does not have enough momentum to maintain its direction. Since the validity of the breakout is compromised, traders will close their positions causing the price to not make the sharp move that many were expecting.

A false-break is really sort of a deception by the market. It works like a test on a price level that can result in a break of that level but instead of breaking, the market retracts and does not sustain itself above or below that level. The market does not close outside of the level being tested but makes a false-break of it. These false-breaks are good indications of impending market direction, and traders can use them to their advantage.

The Inside Bar

The Inside Bar Breakout Strategy is simple to apply and comes with huge rewards compared  to the amount of risk involved. The inside bar is in place when the highest price is lower than the preceding bar’s high, and the lowest price is higher than the preceding day’s low. In other words, an inside bar is said to have formed when entire bar’s price action range i.e.: Open, Low, high and close takes place within the high and low of the previous bar/day.

The Inside Bar Forex trading strategy is a popular system because it comes with an acceptable win/loss ratio. It doesn’t require any indicators and can be applied on the bare candlestick or bar chart. However, the entry conditions needed for this strategy occur quite infrequently so it is not often used.

The 5 Most Important Reasons to Save Money

In one of our recent blogs we talked about how to make a saving money easier. In today’s blog we’re going to look at 5 reasons that saving money is so important. The fact is, having enough to pay for everything you need, while a good thing, doesn’t mean that you shouldn’t be putting aside some money every month. There are a lot of excellent, and vital, reasons that you should be saving money, especially if you aren’t in debt right now.

Reason 1. Saving up for a down payment on a new home. Simply put, if you have a large down payment that you can put on your home, your negotiating power increases substantially. You can get better interest rates, possibly get a bigger home and, over time, will pay a lot less in interest on your smaller mortgage.

Reason 2. Creating an emergency fund. We’ve talked about this in several blogs before but it’s well worth repeating. Having an emergency fund set aside in a money market or checking account, one that can cover from 6 to 12 months’ worth of expenses, could mean the difference between financial stability and bankruptcy. If you get hurt, lose your job or for whatever reason don’t have any income coming in, having an emergency fund set aside could literally save you from destitution.

Reason 3. Saving for a family vacation. Spending time with your spouse and children can create powerful, strong and lasting bonds as well as wonderful memories. A trip to Europe or a cruise around the Caribbean is something that you and your family will remember for many years. Frankly, you also don’t want to pay for your vacation with credit because, in two or three years’ time, the resentment you feel because you’re still paying it off might negate any fond memories you have.

Reason 4. Saving for an automobile. Paying for a car, whether new or used, with cash will give you a lot more purchasing power. Having cash in hand in an automobile dealership gives you negotiating power that simply can’t be ignored. Also, not having a car payment every month will allow you to do much more with your weekly paycheck.

Reason 5. Saving for your eventual retirement. We’ve talked about this quite a few times in the past as well, because saving for retirement is extremely important. The earlier you start the better as compound interest will greatly add to your “nest egg” once you hit your golden years. Most experts believe that you should put between 10 and 15% of your gross income aside for retirement and, if you have a 401(k) with an employer matching program, match those funds to the maximum every year. Outside of a 401k you can and should open a brokerage account so you can diversify. Regardless of what you invest in, the more you put away early in life will be that much better for when you retire.

We hope you agree that those are five excellent reasons to save. There are others, to be sure, but we believe these are the most important. Saving money might not always be easy but, over a lifetime, could mean a huge difference in how you live your life and how you spend your time during retirement.